U.S. President Donald Trump warned that Canada’s decision to recognize Palestinian statehood could hurt trade talks between the two countries. The warning came after Canadian Prime Minister Mark Carney announced on Wednesday that Canada plans to recognize a Palestinian state before the United Nations General Assembly in September. According to Politico, Trump made his feelings clear on his Truth Social platform, the failing social media site where he regularly posts controversial content, late Wednesday night. He wrote about Canada’s announcement and suggested it would make trade deals much harder to reach. The president has been a strong supporter of Israel and has argued that recognizing Palestinian statehood would reward Hamas, the group behind the October 7, 2023, attack on Israel. “Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh, Canada!!!” Trump wrote on Truth Social, where he’s known for posting inflammatory content that often backfires. The comment shows how the Palestinian issue has now become part of the ongoing trade talks between the two neighboring countries. Trade talks are already facing problems with the Friday deadline approaching The trade talks between Canada and the U.S. were already having problems before Trump’s latest comments. There is a Friday deadline to reach a deal, or Canada could face steep U.S. tariffs. However, negotiations have stalled, and no deal framework has been set up yet. If you think Trump isn't coming to a trade deal with Canada because of Canada's position on a Palestinian state, you shouldn't be in the political commentary business.— Jamie Weinstein (@Jamie_Weinstein) July 31, 2025 Reports suggest that U.S. officials have been bringing up old complaints during the trade talks without offering any clear way forward. Canadian officials have expressed frustration with this approach. Earlier this year, the White House pushed Canada to cancel its planned digital services tax to get the talks moving again. Canada is not alone in its decision to recognize Palestinian statehood. France and the U.K. are also planning similar moves. All three countries have pointed to the suffering of civilians in Gaza as one of the main reasons for their decision. They have also said that Hamas must give up its weapons and cannot be part of any Palestinian state. The war in Gaza started after Hamas-led militants killed more than 1,000 people and took 251 hostages in their October 7 attack on Israel. Israel’s military response has killed around 60,000 Palestinians, with more than half being women and children, according to Gaza’s Health Ministry. The U.N. Secretary-General has said that Gaza is “on the brink of famine” due to the humanitarian crisis.